Novafora's takeover of Transmeta could be threatened by a class action lawsuit from disgruntled shareholders.
Lawyers Levi and Korsinsky are calling on shareholders to join a class action case against Transmeta because, they say, the takeover is unfair.
As we reported yesterday Novafora is offering $255.6m for the company, or …

COMMENTS

Accuracy & whole picture

They value the company at $0.4 Million. However, what's not been mentioned are the company liabilities.... these may be substantial. This is why some companies are sold for £1 or $1 - the purchaser is taking on the liabilities but believe they can turn around the business.

Actually it's very good value for money.

Sure, Transmetta will probably lose another $20M or so before the deal goes through, but for that twenty million the investors will get the best media spin doctors in the industry (Apart from the Vista sales team, natch!)

Mind you, they'll also get the best money wasters in the industry too. (Apart from the guys who sign purchasse orders for Vista, naturally!)

Insider stitch up

The company has no debt and with only 30 employees minimal liabilities. Forget about x86 emulation that is old history. Transmeta have in the last year licenced their power saving technology to Intel and nvidia for significant fees. Also they have patents critical to transistor back-biasing techniques progressing through the system. The nvidia CEO is on record as saying that transmeta's Ip is critical and that eventually many would have to licence.

So it would appear that at the critical moment where the market is finally moving towards them (65nm and lower geometries) transmeta's board have found a way to take the valuable IP out of public ownership for nothing.

You have got to be kidding!

The minority shareholders of Transmeta are about to be fleeced. How can you (as a company) receive over $285 million in the last year for licensing your IP and being told less than three months ago by the CEO that your IP is valuable and now the CEO and Board of Directors are going to sell the company for $255 million when that is equal to or less than the cash on the company books, and no debt. Essentially selling the company and IP for zero $. There is something very strange going on here and any reputable reporter should be investigating to find out what that is. Who is it that stands to benefit from this deal? Obviously not the minority shareholders.